Trade War Talks To Unbox The Market Trend

Feb 22, 2019 | 15:54 PM IST

Feb 22, 2019 | 15:54 PM IST

Our Analysis

Last two weeks were darling for the investors, but ahead of the valentines, the color red remained loyal to them and the market was in no mood to welcome bulls. The Pulwama attack as well the other concerns such as rising crude oil price kept the investors on the back foot.
After the ninth consecutive day of correction, the market has wiped out over Rs. 6 lakh crore of investors wealth, however, due to the trade talks between US and China there was as short covering seen, which has turned as a positive catalyst for the Indian markets.The government has planned to infuse Rs.48,239 crores of capital in 12 public sector banks. Which will further aid them to get out of the PCA (Prompt Corrective Action) norms.

However, We don't see any major trigger on the domestic front in the upcoming week which can further take markets on the rising rides, all eyes will be on US and China trade war talks. Among all the noises around the globe, being an investor you don't need to worry about your picks.

Many of the best stocks across the sectors witnessed corrections owing to current volatility, though the stocks with the healthy financials and attractive valuations should be preferred in this situation.

This Weeks Market Highlights:

Benchmark Indices:

1. Benchmark indices ended nearly 1% lower on Monday with Nifty closing the trading session below 10650 levels. Among sectoral indices, NIFTY REALTY and NIFTY MEDIA closed on a positive note while the other indices closed on a negative note with NIFTY PSU BANK and NIFTY FMCG losing the most.
2. The benchmark indices erased the gains of the first half as selling intensified in the last hour as Nifty closed 0.34% lower on Tuesday. NIFTY REALTY extended yesterday's gains and closed higher by 1.72% ahead of the GST council meeting tomorrow which is expected to provide relief for home buyers with a cut in GST rates for under-construction residential properties. NIFTY METAL also managed to outperform the benchmark index Nifty gaining more than 1.4% as some value-buying was seen in the index. NIFTY IT was the top loser declining more than 2%.
3. The benchmark index NIFTY on Wednesday ended more than 1% higher, snapping its 9-day losing streak. All the sectoral indices ended in green in Wednesday's trading session with NIFTY METAL being the top gainer, ending higher by 2.8% extending its gains from its previous day. NIFTY IT also saw buying interest after declining for 4 consecutive trading sessions gaining as much as 1.8%. As far are stocks are concerned, IBULHSGFIN, TATASTEEL, and VEDL were among the top gainers while DRREDDY, HEROMOTOCO, HINDUNILVR were among the top losers.
4. Benchmark indices closed on a positive note on Thursday for the second consecutive trading session with Nifty gaining 0.51%. All the sectoral indices ended in green except NIFTY IT which closed marginally in the negative. NIFTY PHARMA and NIFTY METAL were the top gainers ending higher by around 1% each. As far as stocks are concerned, IBULHSGFIN, BAJAJFINSV, and TATAMOTORS were among the top gainers while INFRATEL, YESBANK and INFY were among the top losers.
5. Indian share markets opened flat on Friday. The BSE Sensex was trading down by 35 points while the NSE Nifty was trading down by 4 points. Both, the BSE Mid Cap Small Cap indices opened up by 0.1%. Sectoral indices have opened on a mixed note with energy stocks and realty stocks witnessing maximum buying interest while metal stocks and capital goods stocks are trading in red.

Broader Index & Global Market:

A drop in Januarys oil output has helped push oil prices to three-month highs.
U.S. President Donald Trump signed a spending bill to avert a second partial government shutdown in the two months.
The companys which are representing a major portion of the global stock market have reported single-digit annual growth in profit and sales.
U.S. economic data sent mixed messages. The December core consumer price index (CPI), which excludes volatile food and energy prices, beat expectations, coming in at 2.2%. But retail sales recorded their sharpest decline in more than nine years, suggesting a slowdown in economic activity that will likely be reflected in the fourth-quarter gross domestic product (GDP).

Movers & Shakers

Vedanta: Vedanta and JSW Steel are in talks to make a joint bid for Essar Steel in a last attempt to keep ArcelorMittal away. A bid together, or one from either company, could be made next week. The stock rose 14.15% since 15-Feb-2019.

Key Market Drivers

1. The Reserve Bank of India (RBI) Friday had withdrawn the 20 percent limit on investments by FPIs in the corporate bonds of an entity with a view to encouraging more foreign investments.

2.US oil prices hit a three-month high, led by cuts in production by the Organization of the Petroleum Exporting Countries.

3. The government has approved National Electronic Policy 2019 with various incentives to promote domestic manufacturing of electronics goods and achieve a turnover of US$400 billion by 2025.

4. The Goods and Services Tax Council decided to keep a hold on adjusting tax rates on the real estate sector as several States.

Stocks To Watch

Sensex, Nifty End Higher For Second Day; PSU banks rally

Indian Equity Benchmark indices started on a Flat note, Most Asian markets were steady after US Federal Reserve minutes affirmed it would be "patient" on interest rate rises. The Sensex was up 7.59 points at 35763.85, while Nifty was down 5.30 points at 10730.20. Among sector compiled by NSE advanced, led by the Nifty PSU Bank Indexs 0.96 percent advance. While, the Nifty IT Index was the top sectoral loser, down 0.59 percent. Shares of many PSU banks surged today after the government announced 48,000 crore more fund infusion in FY19 in 12 banks as part of a bank recapitalization plan.

In the afternoon session, share market Indices was trading higher. The Sensex was up by 119.08 points or 0.33% at 35875.34, and the Nifty Grew by 33.65 points or 0.31% at 10769.10. Among sector metal, media & energy were trading in the green, While Auto, infra were in red. In a Broder Market, NSE mid-cap was up by 0.41% and smallcap indices were trading higher by 0.64%, respectively.

In the last hour of trade, Indian equity benchmarks Indices was trading at days high, Nifty was trading around 10780 Mark. Indian equity benchmarks Indices closed on a positive note, Nifty closed around 10,800 level. The Sensex was up 142.09 points at 35898.35, while Nifty was up 54.40 points at 10789.90. Except IT, all the sectoral indices ended in green led by pharma, metal and PSU banking. In the broader Market, the NSE MidCap Index was up by 1.08 percent and the NSE SmallCap Index grew by 1.44 percent. Markets are currently dancing to the global tunes and we feel it may continue for some time, in absence of any major event on the local front keeping a close eye on global developments will be important going forward.

Top Gainers

IBULHSGFIN by 6.32% to Rs 685.95. ,BAJAJFINSV by 3.21% to Rs 6,191.05, TATAMOTORS by 3.16% to Rs 170.00,DRREDDY by 3.12% to Rs 2,604.05., VEDL by 2.59% to Rs 164.40.

Top Losers

INFRATEL By -1.87% to Rs 312.25, YESBANK by -1.08% to Rs 215.50, INFY by -0.90% to Rs 734.00, NTPC by -0.58% to Rs 136.40.,COALINDIA by -0.54% to Rs.213.80.

Analysis Of Top Gainer And Loser

IBULHSGFIN is the top gainer in today's market session, Japanese SoftBank has invested Rs 2,800 crore in the UK-based OakNorth Bank, in which IndiabullsNSE 10.75 % Housing Finance has a controlling stake.

INFRATEL is the top loser in today's market, Company is witnessing profit booking from higher levels.

Key Market News

The government had approved the disbursal of a recapitalization package of 48,239 crore for 12 public sector banks, Financial Services Secretary Rajiv Kumar announced on Wednesday.

The Finance Ministry is expecting bad loan recoveries to touch Rs 1.80 lakh crore during the current fiscal, With two major cases at the final stage of resolution. So far, banks had recovered Rs 1 lakh crore under the Insolvency and Bankruptcy Code (IBC).

Retirement fund body EPFO may announce an interest rate of 8.55 percent on PF deposits for 2018-19, same as provided in 2017-18, to its 6 crore subscribers.

The Goods and Services Tax Council decided to keep a hold on adjusting tax rates on the real estate sector as several States.

M&MFIN is currently quoting at Rs.395.60 up by Rs 13.25 or 3.47% from its previous closing of Rs.382.35 on the NSE. The scrip opened at Rs.385.00 & has touched a high & low of Rs.395.90 and Rs. 378.85 respectively. So far 18,07,003(NSE) shares were traded on the counter. The current market cap of the company is Rs 24,444.96Cr. The NSE/BSE group stock has touched a 52 week high of Rs.543.00 on 30-APR-2018 & a 52 week low of Rs. 342.65 on 05-OCT-2018.

YESBANK is currently quoting at Rs. 215.50 down by Rs.-2.35 or -1.08% from its previous closing of Rs.217.85 on the NSE. The scrip opened at Rs.218.85 & has touched a high & low of Rs.218.85 and Rs.214.00 respectively. So far 2,79,75,632(NSE) shares were traded on the counter. The current market cap of the company is Rs 49,726.40cr. The BSE/NSE group stock has touched a 52 week high of Rs 404.00 on 20-AUG-2018 & a 52 week low of Rs 146.75 on 29 -NOV-2018.

Sensex Take a Leap of 400 Points, Snaps 9-day Losing Run

Indian Equity Benchmark indices started on a positive note, The real estate companies were in focus as the GST Council will meet later today, with the rationalization of rates of Goods and Services Tax (GST) on real estate and lottery on the agenda, The Nifty Realty index was up around 1%. the Sensex was up 196.95 points at 35549.56, while Nifty grew by 63.50 points at 10,667.90. All the sectoral indices were trading in green led by realty, energy, metal, infra, pharma, and FMCG. The market breadth was inclining in favor of buyers. The Indian rupee opened marginally higher at 71.29 per dollar versus Monday's close 71.34.

In the afternoon session, Indian equity benchmarks Indices was trading higher. The Sensex was up by 220.34 points or 0.62% at 35572.95, and the Nifty Grew by 68.70 points or 0.65% at 10673.05. Among sector, all were trading in green led by Metal, Infra, IT & PSU bank. Shares of the PSU bank rallied in todays trade as the government can infuse up to Rs 47,000 crore capital in 12 state-run banks. In a Broder Market, NSE mid-cap was up by 0.46% and smallcap indices were trading higher by 0.58%, respectively.

In the last hour of trade, Nifty was trading around 10660 Mark. Indian shares rebounded, ending a nine-day losing run. The Sensex was up 403.65 points at 35756.26, while Nifty was up 131.10 points at 10735.50All the sectoral indices ended in green led by metal, IT, energy, infra, bank, pharma and auto stocks. In the broader Market, the NSE MidCap Index was up by 1.03 percent and the NSE SmallCap Index grew by 1.06 percent. We expect the market to take cues from global developments in absence of any key domestic triggers in the near term. The outcome of US-China trade talks, the release of the Federal Open Market Committee (FOMC) meeting minutes as well as progress on Brexit deal will give further direction to the market. Strong inflows from DIIs, appreciation of the rupee and value buying in midcaps and small-caps helped the domestic market.

Top Gainers

IBULHSGFIN by 6.14% to Rs 652.00. ,TATASTEEL by 4.83% to Rs 493.70, VEDL by 4.64% to Rs 160.20,ADANIPORTS by 4.43% to Rs 354.60., HINDALCO by 3.94% to Rs 193.90.

Top Losers

DRREDDY By -0.35% to Rs 2,528.00, HEROMOTOCO by -0.30% to Rs 2,629.00, HINDUNILVR by -0.11% to Rs 1,736.00, ZEEL by -0.10% to Rs 446.00.,INDUSINDBK by -0.08% to Rs.1,479.25.

Analysis Of Top Gainer And Loser

IBULHSGFIN is the top gainer in today's market session, The company witnessed the good buying interest in today's market trade, Stock up by 6.14%.

DRREDDY is the top loser in today's market, The U.S. Supreme Court Chief Justice John Roberts has rejected the Indiviors bid to protect Suboxone film, the companys treatment for opioid addiction. The court also refused to block Dr. Reddys Laboratories and others from selling generic versions of Suboxone film.

The government has approved National Electronic Policy 2019 with various incentives to promote domestic manufacturing of electronics goods and achieve a turnover of US$400 billion by 2025.

The WTO's quarterly outlook indicator, a composite of seven drivers of trade, showed a reading of 96.3, the weakest since March 2010 and down from 98.6 in November. A reading below 100 that indicate below-trend growth in trade.

The NBFC is facing the headwind from last September, As per the data, corporate bond issuances by them have risen by 30 percent in January, reflecting renewed confidence among both issuers as well as investors.

Chinas central bank had announced that it will implement 1-year central bank bill swaps worth 1.5 billion yuan ($222.02 million) to improve the liquidity of banks perpetual bonds, and support issuance of the bonds to replenish capital.

Stocks To Watch

ESCORT is on the upside while TVS MOTORS is on the downside.

ESCORT is currently quoting at Rs.658.85 up by Rs 21.70 or 3.41% from its previous closing of Rs.637.15 on the NSE. The scrip opened at Rs.641.00 & has touched a high & low of Rs.662.00 and Rs. 640.15 respectively. So far 21,72,700(NSE) shares were traded on the counter. The current market cap of the company is Rs 8,060.04 Cr. The NSE/BSE group stock has touched a 52 week high of Rs.1,017.70 on 02-MAY-2018 & a 52 week low of Rs. 541.00 on 08-OCT-2018.

TVS MOTOR is currently quoting at Rs. 466.00 down by Rs.-7.05 or -1.49% from its previous closing of Rs.473.05 on the NSE. The scrip opened at Rs.475.40 & has touched a high & low of Rs.479.65 and Rs.464.25 respectively. So far 10,29,510(NSE) shares were traded on the counter. The current market cap of the company is Rs 22,181.82cr. The BSE/NSE group stock has touched a 52 week high of Rs 689.95 on 17-APR-2018 & a 52 week low of Rs 464.25 on 20 -FEB-2019.

Sensex extends fall to ninth day; IT stocks drag

Indian Equity Benchmark indices started on a flat note, with Nifty hovering around 10,650 marks, A new round of talks between the United States and China to resolve their trade war would take place in Washington, starting today, with follow-up sessions at a higher level later in the week, the White House. The Sensex was up 51.90 points at 35550.34, while Nifty was up 15.40 points at 10656.40. Among sector compiled by NSE advanced, led by the Nifty Realty Indexs 1.9 percent rally. While, the NSE Nifty IT Index was the top sectoral loser, down 0.28 percent.

In the afternoon session, Indian equity benchmarks Indices was trading higher. The Sensex was up by 148.73 points or 0.42% at 35647.17, and the Nifty declined by 37.15 points or 0.35% at 10678.10. Among sector reality, media, metal was trading higher, While Pharma, IT was trading in the red. In a Broder Market, NSE mid-cap was up by 0.65% and smallcap indices were trading higher by 0.45%, respectively.

In the last hour of trade, Nifty was trading around 10680 Mark. During the last hour of trading, Bears drag the market lower to close just above 10600. the Sensex was down 145.83 points at 35352.61, while Nifty was down 36.60 points at 10604.40. Among the sector compiled by NSE fell, led by the Nifty Realty Indexs 1.7 percent gain. While, the Nifty IT Index was the top sectoral loser, down 2.08 percent. In the broader Market, the NSE MidCap Index was up by 0.43 percent and the NSE SmallCap Index grew by 0.26 percent.

Top Gainers

VEDL by 3.34% to Rs 152.95. ,GRASIM by 3.02% to Rs 721.00, BPCL by 2.75% to Rs 336.75, ZEEL by 2.06% to Rs 448.00., JSWSTEEL by 1.78% to Rs 266.55.

Top Losers

WIPRO By -3.26% to Rs 363.35, TCS by -3.18% to Rs 1,907.60, INDUSINDBK by -2.79% to Rs 1,474.70, ADANIPORTS by -2.49% to Rs 338.65.,NTPC by -2.44% to Rs.134.10.

Analysis Of Top Gainer And Loser

VEDL is the top gainer in today's market session after Vedanta may make another attempt at buying Essar Steel. But this time, it won't be alone but may partner Sajjan Jindal's JSW Steel. The two companies may come together and put in a joint bid of about Rs 47,000 crore, said an industry executive. But the final call is yet to be taken said the executive.

WIPRO is the top loser in today's market, In today market the overall IT pack has witnessed a sharp sell-off, Wipro was the top loser dropped almost 4% in today's trade.

Key Market News

A new round of talks between the United States and China to resolve their trade war would take place in Washington, starting today, with follow-up sessions at a higher level later in the week, the White House.

Chinese Vice Premier Liu He will visit Washington on Thursday and Friday so as to continue trade negotiations with the United States.

US oil prices hit a three-month high on Tuesday, led by cuts in production by the Organization of the Petroleum Exporting Countries.

The Reserve Bank of India (RBI) has decided to pay 28,000 crore as interim dividend to the government, which would help the Centre to meet its revised budget estimates that include an allocation for the first-ever income transfer to farmers and burnish its fiscal credentials ahead of the general elections.

The Reserve Bank of India (RBI) will inject Rs 12,500 crore into the system through the purchase of government securities on Thursday to increase the liquidity. The purchase would be made through open market operations (OMOs).

The Reserve Bank of India (RBI) will inject Rs 12,500 crore into the system through the purchase of government securities on Thursday to increase the liquidity. The purchase would be made through open market operations (OMOs).

Reserve Bank Governor Shaktikanta Das would likely to meet the heads of public and private sector banks this week to discuss the transmission of an interest rate cut to borrowers.

Stocks To Watch

ICICIBANK is on the upside while YESBANK is on the downside.

ICICIBANK is currently quoting at Rs.342.70 up by Rs 3.95 or 1.17% from its previous closing of Rs.338.75 on the NSE. The scrip opened at Rs.339.10 & has touched a high & low of Rs.350.40 and Rs. 339.10 respectively. So far 1,43,84,763(NSE) shares were traded on the counter. The current market cap of the company is Rs 2,21,221.28 Cr. The NSE/BSE group stock has touched a 52 week high of Rs.383.55 on 09-JAN-2019 & a 52 week low of Rs. 256.50 on 16-JUL-2018.

YESBANK is currently quoting at Rs. 213.50 down by Rs.-0.05 or -0.02% from its previous closing of Rs.213.55 on the NSE. The scrip opened at Rs.215.10 & has touched a high & low of Rs.218.10 and Rs.211.55 respectively. So far 3,39,90,276(NSE) shares were traded on the counter. The current market cap of the company is Rs 49,136.62cr. The BSE/NSE group stock has touched a 52 week high of Rs 404.00 on 20-AUG-2018 & a 52 week low of Rs 146.75 on 29 -NOV-2018.

Markets Struggle Sustain Despite Positive Global Cues

Indian Equity Benchmark indices started on a flat note, with Nifty holding above 10,700 marks, despite positive global cues. Most Asian markets are firm today on hopes of progress in China-US trade talks. The Sensex was up 38.58 points at 35847.53, while Nifty was up 6.60 points at 10731. Among sector compiled by NSE advanced, led by the Nifty Pharma Indexs 0.75 percent gain. While, the NSE Nifty Auto Index was the top sectoral loser, down 0.56 percent. The market breadth was inclining in favor of the seller. The Indian rupee was trading lower by 18 paise at 71.40 per dollar versus Friday's close 71.22.

In the afternoon session, Indian equity benchmarks Indices extended losses to trade at days low. The Sensex was down by 246.52 points or 0.69% at 35562.43, and the Nifty declined by 77.75 points or 0.72% at 10646.65. Among sector reality, media was trading higher, While energy, IT, FMCG, & auto was trading in the red. In a Broder Market, NSE mid-cap was down by 0.51% and smallcap indices were trading lower by 0.58%, respectively.

In the last hour of trade, Indian equity benchmarks Indices continued to trade lower, Nifty was hovering around 10660 Mark. Benchmark indices ended near the day's low with Nifty below 10,650 level. the Sensex was down 310.51 points at 35498.44, while Nifty was down 83.40 points at 10641. Among the sectors compiled by NSE ended lower, led by the Nifty PSU Bank Indexs 1.25 percent fall. While, the NSE Nifty Realty Index was the top sectoral gainer, up 0.76 percent. In the broader Market, the NSE MidCap Index was down by 0.93 percent and the NSE SmallCap Index declined by 0.98 percent. Nifty is showing signs of decoupling with the US market. Almost all Asian markets were up today and the US too was up on Friday, but still Nifty slipped deep in the red. the recent profit-taking phase in private banking counters and IT majors, which were holding the benchmark index, are added negatives.

Top Gainers

INFRATEL by 3.13% to Rs 316.50. ,ONGC by 1.59% to Rs 137.15, ZEEL by 1.51% to Rs 437.85, TATAMOTORS by 0.90% to Rs 163.10., AXISBANK by 0.84% to Rs 692.40.

Top Losers

IBULHSGFIN By -3.50% to Rs 617.00, TCS by -2.96% to Rs 1,969.60, RELIANCE by -2.31% to Rs 1,215.65, BAJAJFINSV by -2.31% to Rs 5,886.00.,YESBANK by -2.28% to Rs.214.00.

Analysis Of Top Gainer And Loser

INFRATEL is the top gainer in today's market session after The companys arm Bharti Airtel is looking at insourcing to manage its technology operations as a contract with IBM is up for renewal, close to the development.

IBULHSGFIN is the top loser in today's market, The company has witnessed selling pressure in todays market trade, the Share price dropped 3.50% at 617.00.

Key Market News

India's merchandise trade deficit has been widened to $14.73 billion in January after hitting a 10-month low of $13.08 billion in December, data released by Commerce Ministry showed. Merchandise exports grew by 3.74 percent on the year at $26.36 billion, mainly due to growth in textiles, drugs, and pharmaceuticals as well as organic and inorganic chemicals.

The Reserve Bank of India (RBI) Friday had withdrawn the 20 percent limit on investments by FPIs in the corporate bonds of an entity with a view to encouraging more foreign investments.

The country's foreign exchange reserves had been declined by $2.119 billion to $398.122 billion in this week to February 8, due to fall in foreign currency assets.

Finance Minister Arun Jaitley has scheduled to address the post-budget meeting of the central board of the Reserve Bank on February 18. The meeting will take a call on the interim dividend need to be paid to the government during the current fiscal.

The government's disinvestment proceeds have been touched to Rs 53,558 crore so far in the current fiscal, against the full year budget target of Rs 80,000 crore. Last week, RS 10,000 crore had come in from Bharat-22 ETF and, another Rs 5,379 crore from the sale of Specified Undertaking of Unit Trust of India (SUUTI) stake in Axis Bank.

Stocks To Watch

OBEROIRLTY is on the upside while KEI is on the downside.

OBEROIRLTY is currently quoting at Rs.488.60 up by Rs 20.65 or 4.41% from its previous closing of Rs.467.95 on the NSE. The scrip opened at Rs.469.95 & has touched a high & low of Rs.496.70 and Rs. 469.00 respectively. So far 8,13,729(NSE) shares were traded on the counter. The current market cap of the company is Rs 17,681.98Cr. The NSE/BSE group stock has touched a 52 week high of Rs.610.00 on 24-APR-2018 & a 52 week low of Rs. 351.35 on 05-OCT-2018.

KEI is currently quoting at Rs. 312.20 down by Rs.-15.55 or -4.74% from its previous closing of Rs.327.75 on the NSE. The scrip opened at Rs.327.00 & has touched a high & low of Rs.331.95 and Rs.311.00 respectively. So far 92,819,(NSE) shares were traded on the counter. The current market cap of the company is Rs 2,456.55cr. The BSE/NSE group stock has touched a 52 week high of Rs 496.00 on 30-MAY-2018 & a 52 week low of Rs 248.00 on 23 -OCT-2018.

At Niveza India Pvt Ltd., we all come to work everyday to take the challenges of stock market head on and to change people's
perception that stock market investment is like a gamble. Over the years, we have built our profile as a company which has brought
optimum value to our subscribers through our well-researched stock recommendations....
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At Niveza India Pvt Ltd., we all come to work everyday to take the challenges of stock market head on and to change people's
perception that stock market investment is like a gamble. Over the years, we have built our profile as a company which has brought
optimum value to our subscribers through our well-researched stock recommendations. We don't promise you unrealistic returns,
we don't chase intraday or F&O dreams. We believe in the ideals of value & growth investment; these values are reflected in our
products. We are always marching ahead with the goal to better ourselves.

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